Bitcoin Bounces Back but Market Turmoil Persists
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 06 2026
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Source: CNBC
- Bitcoin Price Fluctuations: Bitcoin rebounded to $66,015 on Friday after dipping below $61,000 on Thursday, nearing the critical $60,000 support level, indicating high market uncertainty and investor panic.
- Forced Liquidation Impact: According to Coinglass, over $2 billion in crypto long and short positions were liquidated on Thursday, with nearly $800 million on Friday, exacerbating downward pressure on the market and reflecting investors' risk-averse sentiment.
- Institutional Investor Sell-Off: CryptoQuant reported that U.S. exchange-traded funds that purchased 46,000 bitcoins last year are now net sellers in 2026, indicating that large institutional investors are unwinding their cryptocurrency holdings, leading to increased market liquidity concerns.
- Future Price Predictions: 10X Research estimates that Bitcoin could drop to $50,000 after a potential short-term bounce, with analysts suggesting that despite a possible rally, the overall trend remains downward, indicating the market may hit new lows by summer.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
